Bed Bath & Beyond sells Cost Plus World Market

Bed Bath & Beyond Inc. (NASDAQ: BBBY) on Tuesday said it completed the sale of its Cost Plus World Market subsidiary to a Southern California private-equity firm.

The deal with Los Angeles-based Kingswood Capital Management LP was announced in mid-December. The transaction price wasn’t disclosed.

Headquartered in Alameda, Cost Plus World Market is a national specialty retailer of home furniture, décor, curtains, rugs, gifts, apparel, coffee, wine, craft beer, and food products from around the world. It has 245 stores — including locations in Santa Rosa, Greenbrae, Napa and Vacaville.

In connection with the transaction, Kingswood named Alexander W. Smith to the retailer’s senior management team, formally leading as its executive chairman. Smith has senior expertise in the home and décor categories. He was CEO of Pier 1 Imports from 2007 to 2016, during which time he led a turnaround of that retailer, which specialized in imported home furnishings until it shut down last year.

From 1995 until 2007, Smith held various senior management positions within TJX Companies Inc., including group president and chairman of the HomeGoods division. Most recently, Smith was executive chairman of Vitamin Shoppe, where he oversaw a successful sale of the business.

"I have been a fan of World Market for many years. The company's combination of consumables, home furnishing, and décor give it a unique niche in very large addressable markets," said Smith. "I'm looking forward to working with the team to extend the brand's reach and expand market share."

Cost Plus first opened on San Francisco’s Fisherman’s Wharf in 1958, and that location closed in 2020. Bed Bath & Beyond purchased the chain in 2012 for $495 million.

Wells Fargo Bank, Bank of America, and Callodine Commercial Finance provided debt financing for the acquisition and the go-forward working capital. Goodwin Procter was legal adviser to Kingswood.